Report: Consumers Using Credit Cards Less for Online Gaming

Gamers are using their credit cards less and less to make payments towards games, according to new data released by research firm from Newzoo. According to the research 26 percent of consumers said they had used a credit card to make payments towards games, but in 2011 that number dropped to 20 percent. Pre-payment specialist Ukash concurs with that conclusion; they say nine out of ten of its customers prefer using a cash alternative to their credit and debit cards.

Pre-paid game companies such as InComm, Microsoft, PaySafeCard and Ukash, have seen sales rise year-on-year. The amount spent on pre-paid cards in general have risen from £90m ($142 million USD) in 2010 to £125m ($197 million USD) in 2011.

"It’s far from game over for cash," said Ukash CEO David Hunter. "We’re seeing demand from publishers and gamers for alternative payment."

This could either be an "ease of use" issue where people want to use their bank accounts because they don't have access to a credit card, or it could mean that -in light of security breaches like the one Sony endured on PlayStation Network – consumers are gun shy when it comes to using their credit cards for online game services.

Source: MCV

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